Russia economy meltdown as metal production plummets 23% and recession fears soar

Vladimir Putin at the BRICS Summit (Image: Getty)

The Russian economy is on the brink of recession, with several key sectors showing dwindling productivity, according to analysis. Alexander Kolyandr from the Center for European Policy Analysis took to X to explain that the country's manufacturing sector was "losing its mojo", even in military production.

Meanwhile, a graph shared by the researcher showed growth from finished metals production had fallen by 23% year-on-year, with manufacturing down below 5%.

Russian manufacturing sector is 'losing its mojo', even in military production (Image: Getty)

"The Russian economy, which as recently as the end of last year was showing annual growth of 4.5%, faces not just a slowdown, but a likely recession. The latest official data suggests the economy could dip into negative growth as early as this summer", Mr Kolyandr wrote.

Last month, Putin hinted at his desperation for inflation in Russia to decrease. On June 20, the Russian President said that he hoped that the rate would decrease to 7% this year, after The Central Bank of Russia forecasted between seven and 8%. At the International Economic Forum (SPIEF 2025), Putin said: "The Central Bank and government are making necessary efforts [to reduce inflation]."

The Russian economy could fall into recession as early as this summer, according to the analysis (Image: Getty)

Russia's annual inflation slowed to 9.6% as of June 16, he added, according to Russian news service Interfax. "The Central Bank estimates 7%-8% for the year, but I believe and hope it will be 7%," the President said.

It comes as the central bank says it still considers its inflation target to be 4%. Officials also noted that the target should be such that Russian citizens and businesses do not attach significant importance to the ongoing price increases, reports suggest.